Due to the economic impact of COVID-19, the federal government has cut interest rates. These cuts affect various types of mortgages differently, and have also driven a spike in demand, putting pressure on lenders and their staff. As a result, at times, you may see higher rates, or no rates, on our site. Learn more about the coronavirus’ impact on mortgage rates.
The table below brings together a comprehensive national survey of mortgage lenders to help you know what are the most competitive refinance rates. This interest rate table is updated daily to give you the most current rate when choosing a refinance home loan.
|10-Year Fixed Rate||N/A||N/A|
|15-Year Fixed Rate||2.660%||2.870%|
|20-Year Fixed Rate||3.080%||3.290%|
|30-Year Fixed Rate||3.130%||3.330%|
|30-Year Fixed-Rate VA||2.880%||3.120%|
|30-Year Fixed-Rate FHA||2.740%||3.500%|
|30-Year Fixed-Rate Jumbo||3.180%||3.250%|
|15-Year Fixed-Rate Jumbo||2.670%||2.720%|
|7/1 ARM Jumbo||3.730%||4.060%|
|5/1 ARM Jumbo||3.450%||3.990%|
Rates as of Tuesday, August 11, 2020 at 6:30 AM
Bankrate has been the authority in personal finance since it was founded in 1976 as the “Bank Rate Monitor,” a print publication for the banking industry. Bankrate has been surveying and collecting information on mortgage and refinance rates from the nation’s largest lenders for more than 30 years. Top publications such as The New York Times, Wall Street Journal, CNBC and others depend on Bankrate as a trusted source of financial information, so you know you’re getting information you can trust.
Lenders nationwide provide weekday mortgage rates to our comprehensive national survey to bring you the most current rates available. Here you can see the latest marketplace average rates for a wide variety of refinance loans. The interest rate table below is updated daily to give you the most current refinance rates when choosing a home loan. APRs and rates are based on no existing relationship or automatic payments. For these averages, the customer profile includes a 740 FICO score and a single family residence. To learn more, see understanding Bankrate's rate averages.
Refinancing to a 10-year loan makes sense when you’ve been paying off your mortgage for many years or for homeowners who want to get really aggressive with their repayment.
For example, you have about 11 years left on your mortgage or you started off with a shorter term loan and are a few years into repayment. That way, you can refinance to a lower interest rate without extending your repayment term.
Although rates can differ depending on the lender and what you can qualify for, 10-year refinance rates are generally lower than other terms, like 15- or 30-year mortgages. However, you could face a higher monthly payment, especially if you’re refinancing to a shorter repayment term.
Given the higher monthly payment, it makes sense for homeowners with sufficient cash flow who want to be debt-free sooner, such as those who want to pay off their mortgage before retirement.
The best time to refinance to a 10-year mortgage will depend on whether the potential savings outweigh the fees you’ll pay and other financial considerations. Keep in mind that you could be paying a higher monthly payment, so homeowners should look at their monthly budget to see if it’s possible to take this on.
Homeowners who have an adjustable-rate mortgage and are close to the expiration of their lower-rate initial fixed term should consider refinancing to a 10-year if they have the extra room in their budget for the higher payment. The new fixed-rate mortgage won’t change throughout the lifetime of your loan.
Making significant home improvements may be a good reason to refinance — homeowners can use a cash-out refinance to tap into their home equity and get a 10-year term.
It’s important to look closely at your household income and whether your mortgage plus additional housing expenses — think property taxes and homeowner’s insurance — to see whether you can afford your new payment comfortably.
Look beyond the interest rate when refinancing. Lenders may charge appraisal, closing, origination or other types of fees to refinance. Your current lender could also assess penalties for paying off your loan early, so look into the fine print before proceeding.
One way to see whether refinancing makes sense is to calculate how much you’ll save in interest and subtract it from the fees you’ll pay to see if and when you’ll net any savings. You’ll also want to take into consideration how long you plan on staying in your home to find the breakeven point after refinancing.
Refinancing from an FHA loan to a 10-year conventional one can save you a significant amount of money since you’re most likely paying high insurance premiums that come with FHA financing. This is assuming you won’t need to pay mortgage insurance on your refinanced loan (you won’t if you have at least 20 percent equity).
Homeowners who have jumbo loans could benefit since even a small drop in your interest rate could mean decent savings. However, if your budget feels stretched, make sure you can afford the new payment.
Same goes for VA or ARM (adjustable rate mortgage) loans — it can make sense if you’re able to offset any refinancing costs and afford the potentially higher monthly payments.
Refinancing to a 10-year mortgage can save you thousands in interest paid over the short life of the loan. However, there are fees to consider when you refinance.
These can include:
In some cases, your savings can offset the fees but it’s crucial to do some calculations — Bankrate has a refinance calculator to make it easier.
You want to make an informed decision when deciding to refinance, so do your due diligence. Before applying, check to see if your credit report is accurate and correct mistakes.
Do a bit of research and compare refinance rates from various lenders, including credit unions, mortgage brokers, online lenders and traditional banks. Receiving multiple quotes ensures you can find out the best rate for your credit profile.
Lenders may offer a discounted rate if you purchase points. You can take these into consideration to see if the savings are worth it. It’s also crucial you look at the monthly payment to see whether it’ll work for your budget.
A 10-year mortgage is only for those with the financial power to afford the much-higher payments. You can expect the monthly payment to be about twice as large as that of a 30-year loan. Think carefully before you proceed. And remember that you can pay off any mortgage in 10 years or even less by making additional principal payments. That way, you can control the pace at which to repay the loan, giving you more financial leeway each month.
|Loan Type||Purchase Rates||Refinance Rates|
|The table above links out to loan-specific content to help you learn more about rates by loan type.|
|30-Year Loan||30-Year Mortgage Rates||30-Year Refinance Rates|
|20-Year Loan||20-Year Mortgage Rates||20-Year Refinance Rates|
|15-Year Loan||15-Year Mortgage Rates||15-Year Refinance Rates|
|10-Year Loan||10-Year Mortgage Rates||10-Year Refinance Rates|
|FHA Loan||FHA Mortgage Rates||FHA Refinance Rates|
|VA Loan||VA Mortgage Rates||VA Refinance Rates|
|ARM Loan||ARM Mortgage Rates||ARM Refinance Rates|
|Jumbo Loan||Jumbo Mortgage Rates||Jumbo Refinance Rates|